Star-Gazette from Elmira, New York • 16

Stocks 4C-5C Money Editor Bob Jamieson, 607734-5151, Ext. 255 Star-GazetteWednesday, August 29, 1990 6C Stocks edge up during gulf uncertainty ft Oil prices stop slipping The Associated Press The Associated Press NEW YORK Stock prices rose modestly Tuesday as Wall Street, its eye trained on the Middje East and the oil markets, decided to play it safe following two cjays of sharp gains. Analysts said traders were unwilling to make large commit ments, and so prices fluctuated in a narrow range throughout the day. The Dow Jones industrial average edged up 3.22 after reversing course several times. The slight gam followed a 78.71 point surge in the average on Monday, and a 49.50 point advance Friday.

Advancing' issues outnumbered decliners by a margin of about 5 to 4 in nationwide trading of New York Stock Exchange- Color your gesting to some that they're not agreeing on-ways to increase production." In Vienna, ministers of the Organization of Petroleum Exporting Countries delayed formal; endorsement of a plan for production increases to give more time to hear from absent members Iraq and Libya. i The price of light sweet crude, the benchmark grade of oil, rose 97 cents to $27.88 per barrel for October contracts on the New York Mercan- -tile Exchange. Wholesale unleaded gasoline rose .97 cent to 88.53 cents per gallon for September delivery, while home heating oil rose 1.42 cents to 79.52 cents per gallon on September contracts. Natural gas barely budged, closing at $1,500 per 1,000 cubic feet, compared with Monday's close of $1,502 on October contracts. NEW YORK Oil prices rebounded Tuesday from a tumultuous slide a day earlier, rising almost $1 per barrel as traders speculated on diplomatic efforts to resolve the Middle East crisis.

Traders also were monitoring discussions by the Organization of Petroleum Exporting Countries that could lead to higher crude production, offsetting the shortfall caused by the international boycott of Iraq and Kuwait. Overall, however, market strategists saw no news that could push it wildly in either direction. "It was such a collapse yesterday that it's getting its breath," said Philip L. Dodge, an oil analyst with Nomura Securities International Inc. "OPEC has postponed their meeting, maybe sug UmM Morrison-Knudsen wins $91 .5 million contract listed stocks, with 837 up, 664 down and 492 unchanged.

The market shook off an early wave of profit-taking and then became locked in a narrow trading range for the rest of the day. Analysts said the fluctuations and the relative lack of volume showed the market was very cautious, and that traders were re-luctant to make major commitments while the situation in the Middle East remains uncertain. Jack Barbanel, a stock market analyst with First Global Management said Tuesday's trading "tells me we have to be very suspect" about Monday's big rally. "They really pushed it to the limit, but there's no follow-through today," he said. world than half of the employees covered by UAW contracts.

GM also has a new chairman, Robert Stempel, who's unlikely to want a strike to mar his first two months in office. Bieber repeatedly said Tuesday that the union's aim was to reach a settlement with GM that would be used as a pattern for contracts at Ford and Chrysler. "We are hopeful and confident that we can reach a pattern settlement before September the 14th," Bieber said. "That's what we're going to do now." GM said, "Because it represents the largest segment of the UAW, it seemed appropriate that the company be selected to lead contract negotiations." Ford and Chrysler officials said they were disappointed in being passed over by the UAW. Automakers seek to be the union's bargaining target so they can reach an agreement more tailored to their needs.

DAN D0RFMAI1 Blood on the street: Buy stocks 1 Got the guts to buy stocks in the face of a crisis? If you say no that you want the dust to clear before you ante up your bucks I'm with you. brainy investment adviser Stephen Leeb says we're shortsighted to think this way. VWhen there's blood on the Street and the street today is crimson it's time to buy," he says. "It takes daring and patience to do it but the rewards can be terrific." His view which he documents with impressive numbers is that the snazzy rebound that followed the 16 percent market shellacking brought on by the Middle East crisis is a preview of what's down the road. Reacting to the crisis, Leeb undertook two fast studies to determine the following: One which he did at my behest: What happened after six major crises quickly sent it sliding 10 percent to 20 percent in a matter of weeks? '-The second: What happened to the market on 22 occasions since 1970 after it suffered declines of 10 percent to 25 percent in roughly four weeks? Here are the answers from Leeb, 44, the analytical skipper of the Indicator Digest newsletter in Alexandria, Va.

First to the six crises, including the Korean War and President Nixon's resignation. After each initial beating, the market, as measured by Standard Poor's 400-stock index, rebounded an average 18 percent in six months, 20 percent in 12. -The one crisis related most to the current turmoil in the Mideast is the Korean War, which erupted in June 1950. Initially, the market was clubbed for a five-week loss of about 15 percent. Six months later, though, the market was 31 percent higher.

And a year after the Korean War's kickoff the market was up 36 percent. The six crises, on average, produced a 16 percent loss in the six weeks after the event. i Now to those four-week market beatings. After 22 of them, the market 30 weeks later rose on 17 occasions. The average 30-week gain after the 22 blitzes was 14.5 percent.

Interestingly, in the 30-week periods following those stiff market declines, the 400, on average, has done three times better than almost all 30-week periods since 1968. Leeb argues that the current economy is still poised to strike a cpup for the bulls. For starters, he points to declines in short-term interest rates. On the inflation front, he says we may get an uptick because of higher 011 prices but it'll be just a one-time boost. For an investor whose perspective is six to 12 months or two years not the next 40 seconds "you've got to be in there," Leeb says.

"It could be one of those golden buying opportunities." Dan Dorfman is the business columnist for USA Today. His column runs every Wednesday. ON THE MOVE -inf -'J By GARY HICKS Corning Bureau HORNELL A $91.5 million contract to build new railroad cars for the New York City Metropolitan Transportation Authority will mean an additional 100 jobs at Morrison-Knudsen in Hornell. "We are in the process of adding 100 more people, which is in addition to the 100 we have hired over the past five weeks," Sal Cantali, manager of human relations for the company, said Tuesday. He said M-K currently employs more than 1,300 people in Hornell.

The cars will be operated by Metro-North, an MTA subsidiary, between New York City and New Haven, Conn. Cantali said the MTA board of directors approved the contract last week, and they are now in a mandated 30-day "cooling off period." "It's just a matter of giving others a chance to challenge the bid," Cantali said, and added he air does not expect any problems id develop during that time. He said the contract is for at least 39 new'M-6 railroad cars Cantali said the work is sched uled to begin next year, and wil continue until early 1993. The contract is the second the? company has received for new railcars. The first was a $208 miK lion contract last year for 256 new cars for the Chicago systemj The company is also refurbishing railroad cars for the New York City rail system.

Cantali said the company is' looking for people with electrical1 and mechanical experience to" build the cars. He said the company has not had any problems' meeting their employment needs in the past, and the new contract! will provide stable employment for the company at least until 1993. He said the company is always seeking new contracts to main-j tain production. "We take the work as we can) schedule it out," he said. Carrier was voluntary.

He will be. replaced with Karl J. president and chief operating of-, ficer of UTC subsidiary Otis El-t evator. Wilson became Carrier's presi-i dent in 1984 and chief executive officer in 1986. His tenure atxkr- rier was marked by large-scale layoffs, a revamping of the company's product line and a shift ir, the company's global headquar ters from Syracuse to Hartford, Conn.

7 Carrier employed more than 7,000 people at its Syracuse oper-i ations in the early 1980s. See CARRIER5C mm no)S Provided Consumers who buy colored products such as paint and fabrics today have a wider range of choices because of companies such as Colwell Industries, a color-merchandiser in Minneapolis, Minn. Colwell makes the color cards for the paint and automotive industries and swatch books for the furniture and textile industries. Darlene Kinning, color stylist for Colwell, displays new color-sampling tools soom of which use computer technology in the Minneapolis office. UAW to use future as pattern for new Carrier Corp.

president quits as sales go cold GM pact contracts The Associated Press OWEN F. BIEBER: The United Auto Workers union president gestures at a news conference. IN BUSINESS t5'. UflUJ The Associated Press DETROIT The United Auto Workers union will focus national contract bargaining on General Motors the world's largest and most profitable automaker, union President Owen Bieber said Tuesday. The decision naming GM as the UAW's pattern bargaining target was greeted warmly by the company which, like Ford Motor Co.

and Chrysler had sought to be in the focus. Contracts between the union and the Big Three automakers cover more than 450,000 workers and expire Sept. 14. Under pattern bargaining, the union will negotiate with GM until it reaches an agreement, and then use that as a model in negotiating with the other two automakers. In choosing GM, which was expected, the union selected a company that employs 300,000 unionized auto workers, more The Associated Press SYRACUSE William A.

Wilson will step aside Saturday as head of Carrier Corp. amid slumping sales at the world's largest maker of air conditioning and heating equipment. Wilson, 56, will leave his post as president and chief executive officer at Carrier to become senior vice president for commercial-industrial operations at United Technologies Corp. until he retires March 1. Hartford, UTC is Carrier's parent company.

UTC spokesman Dan Harrison said Wilson's decision to leave 1 Toshiba Display Devices, director for one year; Gregory L. Wickham, director for national affairs. Market roundup Nw York 837 664 dec. Most Activ: Gsnl Motors 40'A Salai: 127.650,000 Index: 176.26 0.08 Bonds: $31,160,000 American 312 234 dec. Most Active: Paine WbNk Pwt 7 l.j Sales: 10,280,000 'a Index: 321 .78 1 .05 Bonds: $2,310,000 Chicago Wheat: Mixed.

Corn: Lower. Oofs: Lower. Vi Soybeans: Mixed. t. DOW 3.22 2,614.85 HYPNOTHERAPIST CERTIFIED: Hypnotherapist Larry Caldwell of Odessa has been certified by the National Guild of Hypnotists, a professional organization of more than 3,000 hypnologists and hypnotherapists.

After meeting all educational and professional requirements, Caldwell was inducted as a member of the association. He was invited to participate in this month's international convention in Nashua, N.H. The national guild represents professionals throughout the United States, Canada, Italy, Denmark, England, New Zealand and the Philippines. Submit Items on appointments, promotions, honors to: On The Move, co Roger A. Neumann, business writer, Star-Gazetta, 201 Baldwin Elmira, N.Y., 14902.

Photographs are Elmira Savings Bank declares 10 cents-per-share dividend ELMIRA The board of directors of Elmira Savings Bank has declared a dividend of 10 cents per share. The bank announced that the dividend will be paid on Sept. 24 to shareholders of record on Sept. 4. According to a statement, earnings per share as of June 30 totaled 66 cents, and bank capital reached $12.1 million, or 6 percent of total assets.

Elmira Savings Bank, with $194 million in total assets, is insured by the Federal Deposit Insurance Corp. It is a federally chartered bank with five offices in Chemung County. Compiled from staff reports. Purchasing association elects new officers, board ELMIRA Nelson H. Harris of R.K.B.

Enterprises has been elected president of the board of directors of the Purchasing Management Association of Elmira Inc. Other officers elected for the 1990-91 year: Karen L. Coletta of Powers Manufacturing, first vice president; Diane V. Rumsey of Corning second vice president; Beverly Bennett of Schweiz-er Aircraft, secretary; Eve Cornish, treasurer; Daniel Nicholson of St. Joseph's Hospital, director for two years; Michael Buckley of Dresser-Rand, director for two years; Joseph Ranlewicz of Brady Supply, director for one year; Michael Ambrosone of.